SITUATION: Two alternatives for a margarita mixer are under consideration. One system, the Mixer-Plus has an initial cost of $6,000. The salvage value after 7 years is expected to be $200. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $2,000 per year. It is expected that this machine will encourage the purchase of an additional 50 drinks per week costing $2.00 apiece to produce and for which $6.00 can be charged. Alternatively, a completely computer controlled mixing system, the Master Blender, with an initial cost of $10,000 is available. The operating costs including operator wages, routine maintenance, overhauls, etc., is expected to be $1,000 per year. The salvage value at the end of 14 years is $500. If this alternative is used an additional 100 drinks per week is expected costing $1.00 apiece to produce and for which $8.00 can be charged. Assume either machine will be employed for 52 weeks per year. The minimum attractive rate of return for the business is 20% per year. REQUIREMENTS: 1. Which method should be selected based on an annual-worth analysis? Show the AW for each alternative. 2. Which method should be selected based on a present-worth analysis? Show the PW for each alternative